A Washington Supreme Court hearing Tuesday on a record $18 million fine against the food industry touched on boycotts, death threats, and whether companies have the same free-speech protection as civil rights workers.
The trade group Grocery Manufacturers Association faces the penalty for failing to timely report the names of the companies that contributed $11 million in 2013 to defeat a GMO-labeling initiative. An appeals court upheld the conviction, but found the violations were not intentional and slashed the penalty to $6 million – still by far the largest fine ever in the U.S. for a campaign violation.
GMA is appealing the conviction, while the Washington state Attorney General’s Office is seeking to restore the original $18 million fine.
At the heart of GMA’s case is whether companies and executives faced retaliation by engaging in political speech. After a tough initiative battle in California in 2012, GMA set up a separate account to take in money from members. GMA then contributed $11 million under its name to the “no” campaign. Under pressure from the state, GMA named the companies shortly before the election.
GMA attorneys say representatives of food companies were threatened with boycotts and death threats, and that the calls for boycotts infringed on the companies’ right of association.
The U.S. Supreme Court set a precedent in 1958 for exempting organizations from state disclosure laws. The case stemmed from the state of Alabama seeking the membership list of the National Association for the Advancement of Colored People. (Capital Press)
